How Much Help?
We all want to help our kids. And we want them to be successful. The challenge then becomes balance.
How much help should we give children when it comes to money? If we hand it over too easily they will not learn to appreciate it’s value and if we let them struggle too much then we don’t open doors of opportunity.
I believe in helping children to earn money, while having them be responsible for their own expenses.
Elementary school children: Help them find a way to earn money, so they can learn to budget.
High School Children: Urge them to get a part time job while they are in school, but also suggest that they consider how they will spend the money. Offer to help them (with transportation back and forth to work, for example) in exchange for their saving a majority of their pay.
University Students: Let them live at home with the same costs ($0) and privileges (cooked meals, roof over their head, access to laundry facilities, and perhaps your car on occasion if that’s been the norm) that they had when they were in high school.
New Grads: For one year after university, and while they are actively seeking employment in their field, allow them to live at home (if they want) but charge them a meagre room and board charge. Enough to cover the food they eat, the hot water and electricity they use.
If you give your children these assistances along the way you will help them to set sail on a smooth financial journey. This method gradually increases their responsibilities while allowing them to focus on the goal of getting an education.
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